TD Bank Escapes Class Action Over Account Freezes

Law360, New York (March 6, 2012, 6:07 PM EST) -- A federal judge on Friday tossed a putative class action accusing TD Bank NA of improperly freezing customer bank accounts and imposing fees at the behest of creditors, saying the plaintiffs can’t use New York state law to sue the bank for money damages.

U.S. District Judge P. Kevin Castel said that New York’s Exempt Income Protection Act — which prevents creditors and debt collectors from freezing bank accounts that contain subsistence funds such as Social Security, veterans or disability benefits — has no express provision...